Sioux Falls Area Workforce Sustainability Analysis
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SIOUX FALLS AREA ACTION AGENDA WORKFORCE SUSTAINABILITY ANALYSIS Submitted by Market Street Services, Inc. www.marketstreetservices.com April 2015 TABLE OF CONTENTS Process Overview ..................................................................................................................................................................................... 1 Introduction ............................................................................................................................................................................................... 3 Methodology .................................................................................................................................................................................... 4 Workforce Sustainability Analysis ..................................................................................................................................................... 6 Existing Research Review ............................................................................................................................................................. 6 How has our Population Grown and Changed? .............................................................................................................. 14 Key Findings .......................................................................................................................................................................... 20 How has our Economy and Workforce changed? .......................................................................................................... 22 Key Findings .......................................................................................................................................................................... 29 What issues are our employers facing today in terms of workforce availability? ............................................. 30 Key findings ........................................................................................................................................................................... 37 What can we expect in the next decade? .......................................................................................................................... 38 Key Findings .......................................................................................................................................................................... 43 Are we developing sufficient talent to meet demand? ................................................................................................ 45 K-12 Schools ......................................................................................................................................................................... 45 Higher education ................................................................................................................................................................ 49 City, State, and regional Programs .............................................................................................................................. 55 Key Findings .......................................................................................................................................................................... 58 Conclusion ............................................................................................................................................................................................... 59 Key Questions ................................................................................................................................................................................ 60 Appendix A: Occupational Breakout ............................................................................................................................................. 63 Information Technology ................................................................................................................................................... 64 HealthCare ............................................................................................................................................................................. 66 Finance and Customer-care ............................................................................................................................................ 68 Advanced Manufacturing ................................................................................................................................................ 70 Biotechnology ...................................................................................................................................................................... 72 Workforce Sustainability Analysis PROCESS OVERVIEW Implementation of the 2009 Future Sioux Falls community and economic development strategic plan has led to a number of accomplishments, many of which have contributed to the Sioux Falls area appearing at the top of national rankings and earning accolades and recognition throughout the Great Recession and its aftermath. A robust economy and the completion of several key efforts – including the Sioux Falls Tomorrow III report, the 2025 Downtown Plan, and the Cultural Plan Update – provide significant momentum for taking the region to the next level. Recent efforts at the state-level that have begun to look more closely at workforce opportunities and challenges provide a strong foundation of knowledge that can inform the strategic efforts of regional leaders in the Sioux Falls area. Ultimately, the question that repeatedly rises to the top of discussions is, “How can we best develop our workforce to ensure that we are fully prepared for the opportunities to come?” To answer this question and take stock of the region’s overall progress, Forward Sioux Falls leadership has engaged Market Street Services to facilitate a six-month talent-focused process that leverages recent and existing studies and initiatives and is led by a Task Force that includes business, government, and education leaders, as well as investors and leaders from the Sioux Falls Development Foundation and the Sioux Falls Area Chamber of Commerce. This process will assess where the region is now in terms of its competitive position; provide an in-depth understanding of both education and training needs and the sustainability of the workforce; and will result in the development of strategic actions that focus specifically on workforce and training needs. PHASE 1: PROJECT INITIATION AND STAKEHOLDER INPUT The six-month process began with a familiarization tour of the region for the Market Street team and a series of focus group and interview sessions. An online survey was developed to ensure that all key voices are heard. Input session participants provided feedback about a broad array of competitive issues and also drilled down on issues related to short and long-term workforce needs and opportunities. PHASE 2: COMPETITIVE ASSESSMENT The report provided an analysis of the Sioux Falls area’s competitive dynamics to assess how the region is performing compared to peer and aspirational communities and also evaluated the Sioux Falls area compared to its performance in years past. Five “scorecards” were used to rank the region’s performance using a wide variety of data indicators. Page 1 – April 2015 Workforce Sustainability Analysis PHASE 3: WORKFORCE SUSTAINABILITY ANALYSIS This phase of the process takes the Workforce Competitiveness scorecard from Phase 2 a step further by adding a detailed analysis of how well the region is positioned to take advantage of future economic opportunities while also filling immediate workforce needs. The Analysis is conducted through the lens of the region’s existing target sectors and incorporates ten-year projection-based data. Feedback received from employers and training providers was reviewed and incorporated alongside quantitative data. PHASE 4: STRATEGIC WORKFORCE ACTION AGENDA AND IMPLEMENTATION GUIDELINES The Strategic Workforce Action Agenda will build on the findings from the first three phases. While it is impossible to predict the specifics of what could be included in the Action Agenda, it is expected that there will be strategies that focus on immediate, mid-term, and long-term needs and opportunities. Once the Action Agenda has outlined the strategic items that will need to be implemented, Implementation Guidelines will be developed that address how the Action Agenda can be operationalized. Page 2 – April 2015 Workforce Sustainability Analysis INTRODUCTION The Sioux Falls region has made significant efforts over the past several years to support its local economy and improve the quality of life for its residents through developments in its aesthetics, community offerings, and other strategies. Input participants spoke highly about the area’s family friendly environment, quality amenities, and positive improvements that have been made recently. The Sanford PREMIER Center, the Big Sioux River Greenway, and downtown developments were among the top cited assets throughout input. However, the sustained growth and development the Sioux Falls area has experienced in recent years is under threat from pervasive issues related to its workforce capacity and skills dynamics. This Action Agenda process seeks to address these issues through assessment of current conditions and future needs with a goal of developing an action plan to address them.